Gold retreated from one-year high on Friday, but still set for its fourth consecutive weekly gain and the largest weekly gain in more than four years, as the selloff in global equites triggered safety demand on bullion.
The precious metal climbed to a high of $1263.09 an ounce on Thursday, the highest in one year, while currently trading around lower $1237.12 from the session’s opening at $1246.31.
Worries regarding global growth, financial turbulence in the euro area and the drop in oil prices pulled global stocks sharply down this week.
Japan’s Nikkei 225 index edged down on Friday to close at its lowest level in 16 months, while recorded a weekly loss of 11.1 percent, the biggest weekly decline since October 2008.
European shares fell to its lowest level in 2-1/2 years on Thursday, while U.S. S&P 500 index reported its lowest close in nearly two years.
Federal Reserve Chairwoman Janet Yellen warned that financial conditions were tightening faster than the Fed wanted, adding to global concerns and putting extra pressure on the U.S. dollar.
The weakening global growth and fall in oil prices could weigh on “the trajectory of the economy and thereby might affect the appropriate stance of policy,” Yellen said.
The U.S. dollar rose slightly on Friday to trade around 95.80 after falling to a five-month low of 95.27 the previous session.
The green currency is now headed for its second straight weekly decline, providing support to gold as an alternative investment.
Crude oil inched down to trade around $27.45 a barrel, set for its second straight weekly decline amid oversupply and weak global demand.
